A filer is an individual who is registered as an active taxpayer on the list by FBR. A non-filer is an individual who is not registered in the list of active taxpayers. So, how to become a filer in Pakistan? That is what we will be answering here.
In this blog, we will be taking a look at how to register for income tax. In Pakistan, the Federal Board of Revenue (FBR) is the government agency that performs the duty of taxation, investigating any criminal activity related to taxes and supervising all the tax-related activities.
ELIGIBILITY REQUIREMENT FOR PAYING TAX
As per law, all the citizens of Pakistan are required to pay tax on their income whether it’s local or from a foreign source if the income meets the taxable income limit decided by the FBR. To know how much tax you have to pay, you can use a tax calculator. Aside from residents of Pakistan, the overseas Pakistanis are also required to pay taxes but they can only pay on their Pakistan Source income.
WHAT ARE THE STEPS FOR REGISTERING YOUR ACCOUNT ON FBR?
The process to become a filer is as follows.
- Go to fbr.gov.pk.
- You will find different options, among them choose ‘Register for Income Tax’ in the Income Tax column.
- Next, you will be asked to register through the IRIS portal
- After directing to the webpage of IRIS, you will be presented with the option to log in. If you do not have a login ID, you will click on the “Registration for Un-registered person” option.
- You will be presented with a registration form for you to provide your information such as your CNIC number, cell phone number, full name, and email address.
- After filling in all the required information, you may click on submit.
- Two separate codes will be sent to your email address and your SIM for confirmation.
- You may enter those codes in their respective fields of “SIM Code” and “Email Code” and click on submit.
- After your account is registered, you may sign in by typing your CNIC number in the field of Registration number and in the field of password, you may type in the password that was provided to you through your SIM or your email address.
IMPORTANT DOCUMENTS REQUIRED FOR FILING TAX
It is important to keep in mind that in order for an individual to become a tax filer, they must have:
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- A certificate of maintenance of a personal bank account in their own name;
- Proof of tenancy/ownership of their business’ property, if having a business;
- Paid utility bill of their business’ property not more than 3 months old, if having a business
WHAT IS A NATIONAL TAX NUMBER?
National Tax Number or an NTN is a unique number for identification, assigned by FBR. NTN Registration is obligatory for every person who is eligible to pay taxes on their income and is also required in many governmental/official documents such as electricity and gas connections, bank accounts etc.
After registering and logging into your account on IRIS Portal, you are required to fill in the form titled 181 (Form of Registration filed voluntarily) (Income Tax) in the Drafts menu on the left side of the screen and provide all the relevant information, in case you are a business owner, you will also have to add in the information regarding your business. After filling in all the information and attaching the required documents you may ‘Submit’ the form.
The registration form will move from the Draft menu to Completed Task. Your NTN Registration is complete and you will be provided with an NTN Registration Certificate. You can now file your taxes.
Tax Home can provide solutions to all your Tax related issues, whether it’s Personal Tax Returns or Corporate Tax reparations So, contact us today and start your Tax filing journey.
